Canadian regulators toughen 911 rules for VoIP providers

The Canadian Radio-television and Telecommunications Commission (CRTC) issued a warning on Wednesday to all Canada-based VoIP providers: If you don't abide by our 911 rules, we'll shut you down.

Under the new rules, traditional incumbent phone companies such as Bell Canada (NYSE: BCE) must disconnect any wholesale customer that violates VoIP 911 service rules.

Service providers will have to inform users about a VoIP service's 911 limitations in a power outage and the risk of using "nomadic" VoIP phones that are not linked to any specific customer address. For example, a user who is traveling can plug his or her phone into any available broadband connection in another person's home or hotel.